Test Bank for An Introduction to Business Ethics(ISE) 7E by Joseph Desjardins - Complete & Updated

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An Introduction to Business Ethics-ISE 7th Edition Joseph Desjardins 2023

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An Introduction to Business Ethics-ISE 7th Edition by Joseph Desjardins.

ISBN-10 1266198121 ISBN-13 978-1266198120 Test bank for An Introduction to Business Ethics-ISE 7th Edition by Joseph Desjardins

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TABLE OF CONTENTS CHAPTER 1: Why Study Ethics?

CHAPTER 2: Ethical Theory and Business CHAPTER 3: Corporate Social Responsibility CHAPTER 4: Corporate Culture, Governance, and Ethical Leadership CHAPTER 5: The Meaning and Value of Work CHAPTER 6: Moral Rights in the Workplace CHAPTER 7: Employee Responsibilities CHAPTER 8: Marketing Ethics: Product Safety and Pricing CHAPTER 9: Marketing Ethics: Advertising and Digital Marketing CHAPTER 10: Sustainability and the Natural Environment CHAPTER 11: Workplace Diversity and Discrimination CHAPTER 12: International Business and Globalization

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Wdocs CHAPTER 1: Why Study Ethics?

TB-An Introduction to Business Ethics(7E,Desjardins)

CHAPTER 1 - Why Study Ethics?

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Ethics refers to the beliefs, values, and principles that guide a person's life and decisions. ⊚ true ⊚ false 2) Ethical behavior and an ethical reputation can provide a competitive advantage in the

marketplace and with customers, suppliers, and employees. ⊚ true ⊚ false 3) In a society that values individual freedom, everything that is legal is ethically right and

everything that is ethically wrong is illegal. ⊚ true ⊚ false 4) Unlike Generally Accepted Accounting Principles (GAAP) for accountants, there are no

principles, standards, concepts, or values common to business ethics. ⊚ true ⊚ false 5) The role of an ethics course should be to convey information to a passive audience, while

treating students as passive learners. ⊚ true ⊚ false 6) The unexamined life, according to Socrates, is not worth living. ⊚ true ⊚ false 7) Business ethics is concerned more with reasoning than answers. ⊚ true ⊚ false

Wdocs CHAPTER 1: Why Study Ethics?

TB-An Introduction to Business Ethics(7E,Desjardins)

8) If something is seriously wrong, the law will prohibit it. Consequently, it's enough to rely on

the law for deciding what's right or wrong. ⊚ true ⊚ false 9) Ethics and ethos are the same thing. ⊚ true ⊚ false 10) Philosophical ethics denies that conformity and obedience are the best guides to how we

should live. ⊚ true ⊚ false 11) According to philosophical ethics, a simple acceptance of customary norms is an adequate

ethical perspective. ⊚ true ⊚ false 12) Philosophical ethics distinguishes what people do value from what they should value. ⊚ true ⊚ false 13) The major reason to study ethics is to be able to answer questions such as "what should I

do?" or "what type of person should I be?" or "how shall I live in my community?" ⊚ true ⊚ false 14) Gatekeepers are those people and institutions whose role is to provide checks on illegal and

unethical behavior. ⊚ true ⊚ false 15) A skeptical challenge to business ethics is that there is no common rational basis for making

ethical judgments. ⊚ true ⊚ false

Wdocs CHAPTER 1: Why Study Ethics?

TB-An Introduction to Business Ethics(7E,Desjardins)

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

16) Which of the following statements is decisive in determining whether or not to study business ethics?

A) Business managers don't need to study ethics in order to know how to treat employees, shareowners, and customers.

B) Business and ethics simply don't mix. In the final analysis, self-interest, represented by profit, overrides the interests of employees, customers, and communities. Opinion and sentiment get in the way of efficient business decision-making.

C) Ethical concerns are as unavoidable in business as are concerns of marketing, accounting, finance, and human resources. Formal study of business ethics helps address these concerns so that businesses can integrate ethics in their decisionmaking.

D) The answers to ethical questions are clear-cut enough; all business people already know right from wrong.

17) Which of the following statements correctly describes the relationship between philosophical

ethics and ethos?

A) Individuals who obey the conventions, mores, and rules of their cultures are already acting ethically. No further philosophical reflection is required.

B) Philosophical ethics distinguishes what people do value from what they should value.

C) What people do value and should value is, for all practical purposes, the same.

D) Philosophical ethics is too abstract to be useful in everyday life situations. Following the mores and customs of one's culture is a more dependable way to make moral decisions.

18) The “Separation Thesis” holds that A) B) C) D)

emotions should be kept out of business decisions. financial calculations should be separated from legal considerations. ethical considerations should be kept out of business. politics should be separated from business.

19) Which of the following is NOT a part of responsible decision making?

A) determining the facts of the situation B) identifying all stakeholders C) using moral imagination to consider all alternatives D) using your common sense to decide

Wdocs CHAPTER 1: Why Study Ethics?

Answer Key Test name: Ch01 1) TRUE 2) TRUE 3) FALSE 4) FALSE 5) FALSE 6) TRUE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) FALSE 12) TRUE 13) TRUE 14) TRUE 15) TRUE 16) C 17) B 18) C 19) D

TB-An Introduction to Business Ethics(7E,Desjardins)

Wdocs CHAPTER 2 - Ethical Theory and Business

TB-An Introduction to Business Ethics(7E,Desjardins)

CHAPTER 2 - Ethical Theory and Business TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Principle-based ethics is based on the concepts of promises, justice, fairness, rights, and duties. ⊚ true ⊚ false 2) Child labor is a very common phenomenon with cases of employing children in the

manufacturing of athletic shoes and clothing being the most well-publicized instances. ⊚ true ⊚ false 3) Because utilitarianism focuses on consequences, producing the greatest happiness for the

greatest number as the sole criterion for determining ethical right and wrong, no action is ever right or wrong in itself, in all cases, in every situation—even, perhaps, lying. ⊚ true ⊚ false 4) Principle-based ethics, also called rights-based ethics, refers to the concept that the correct

path to ethical decision making is determined by duties, such as obligations, commitments, and responsibilities, and not by consequences. ⊚ true ⊚ false 5) Principle-based ethics might allow the sacrifice of individual rights if the overall good

demanded it. ⊚ true ⊚ false 6) According to Kant, any action's maxim that cannot be universalized is ethically wrong and

should not be performed. ⊚ true ⊚ false 7) One way to understand rights is to identify them with a person's wants. Rights protect these

wants even though, objectively, they may conflict with what is really good for a person. ⊚ true ⊚ false

Wdocs CHAPTER 2 - Ethical Theory and Business

TB-An Introduction to Business Ethics(7E,Desjardins)

8) The theory of virtue ethics focuses on a full and detailed description of those character traits

that would constitute a good and human life. Egoism is simply not a factor in the ethical decision making of caring, empathetic, charitable, and sympathetic persons. ⊚ true ⊚ false 9) The condition of plenty or surplus and competition allows everyone to get what they want;

this is a condition of free market capitalism. ⊚ true ⊚ false 10) There is a consensus among utilitarians on how to measure and determine the overall good. ⊚ true ⊚ false 11) Historically, utilitarians place a very high value on individual freedom of choice, even

though free individuals do not always choose what is good for them. ⊚ true ⊚ false 12) According to principle-based ethics, individuals possess certain basic rights that should not

be violated even if doing so would increase the overall good or social happiness. ⊚ true ⊚ false 13) A version of utilitarian ethics invoking the tradition of Adam Smith claims that competitive

markets are the best means for attaining utilitarian goals. This is "market" utilitarianism. ⊚ true ⊚ false 14) Unlike utilitarians, policy makers are not concerned with the well-being of the whole

community. ⊚ true ⊚ false 15) In the context of principle-based ethics, rights and duties are correlated. ⊚ true ⊚ false

Wdocs CHAPTER 2 - Ethical Theory and Business

TB-An Introduction to Business Ethics(7E,Desjardins)

16) Rights are sometimes described as "trumps" that override the collective will. Rights function

to protect certain interests that are more important and central in human well-being than the mere happiness of others. ⊚ true ⊚ false 17) Virtue ethics reminds us to examine how character traits are formed and conditioned. ⊚ true ⊚ false 18) Virtue ethicists turn to such fields as psychology, education, organizational behavior, and

sociology to gain insight about how to teach virtue. ⊚ true ⊚ false 19) Human beings are no more naturally selfish and greedy than they are naturally kind and

compassionate. ⊚ true ⊚ false 20) Utilitarianism and consequentialism are the same thing. ⊚ true ⊚ false 21) Jeremy Bentham argued that only the absence of pain is intrinsically valuable. ⊚ true ⊚ false 22) According to John Stuart Mill, people need to be educated and experienced in a variety of

pleasures before they are competent to judge. ⊚ true ⊚ false 23) Utilitarian ethics has played a prominent role in forming public policy and laws governing

finance, employment, consumerism, and world trade. ⊚ true ⊚ false

Wdocs CHAPTER 2 - Ethical Theory and Business

TB-An Introduction to Business Ethics(7E,Desjardins)

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

24) Which of the following statements is true of ethical theories?

A) Most ethical theories place utmost importance to matters of personal opinion, individual desires, preferences, and wants.

B) Ethical theories are very abstract and disconnected from the realities of the everyday life.

C) Ethical theories not only guide our actions but also provide reasonable justification for prescribing behavior.

D) Most ethical theories hold that good and bad acts should be judged by their consequences.

25) Which of the following ethical traditions implies that a greedy person who does distasteful

and selfish things will not lead a fulfilling and good human life?

A) virtue ethics B) utilitarianism C) Kantian categorical imperative D) psychological egoism 26) Which of the following statements is true of utilitarian ethics?

A) It upholds adhering to a set of principles that may forbid an act that might otherwise

provide overall good consequences.

B) It holds that the ethical significance of any action can be determined by looking at the consequences of that act.

C) It applies most appropriately to ethical personal behavior and decision making.

D) It believes in maximizing personal well-being and the achievement of hedonistic pleasures.

27) Which statement is a legitimate challenge to utilitarian ethical theory?

A) The ends do not justify the means.

B) There is no consensus among utilitarians on how to measure and determine the

overall good.

C) It is difficult to know how to consider the consequences for all the parties that will be affected by an act.

D) It is difficult for the utilitarian to find a balance between individual freedom and the overall good. The more utilitarians emphasize freedom, the more likely they hold more relativistic accounts of the good.

E) All of the answers are correct.

F) None of the answers are correct.

Wdocs CHAPTER 2 - Ethical Theory and Business

TB-An Introduction to Business Ethics(7E,Desjardins)

28) Which of the following reasons accounts for utilitarianism's dominance among policy makers

and administrators?

A) The utilitarian emphasis on measuring, comparing, and quantifying reinforces the view that policy makers should be neutral administrators.

B) Policy experts at all levels are focused on results and getting things done.

C) Efficiency is simply another word for maximizing happiness.

D) Policy experts focus on the collective or aggregate good.

E) All of the answers are correct.

F) None of the answers are correct.

29) Which proposition correctly describes the concept of a right?

A) Rights protect a person's wants.

B) There is really no distinction between a person's wants and interests. Rights protect

both.

C) Rights protect a person's interests.

D) My rights never correspond to your duties and your duties never correspond to my rights.

30) Which of the following statements is consistent with principle-based ethics?

A) Obligations, responsibilities, and commitments do not determine the correct approach

to ethics.

B) Individuals have rights that should not be sacrificed in order to generate a net increase in the collective good.

C) Although certain acts are wrong, they should be performed for the overall happiness they may produce.

D) An act that produces the greatest beneficial consequences is the ethically right thing to do.

31) Which of the following statements is true of Kant's categorical imperative?

A) Kant claimed that all human behavior is egoist, or intended for one's own self-

interest.

B) Kant believed that lying could be made a universal law if it benefitted the majority of mankind.

C) Kant believed that child labor can be justified as it is a means for raising the standard of living in an impoverished country.

D) Kant claimed that ethics requires us to treat all people as ends and not only as means.

Wdocs CHAPTER 2 - Ethical Theory and Business

TB-An Introduction to Business Ethics(7E,Desjardins)

32) Which of the following statements is true of virtue ethics?

A) Virtue ethics holds that ethical decisions are determined on the overall social

consequences of an act.

B) Virtue ethics directs us to consider how various character traits can contribute to, or obstruct, a worthy and good human life.

C) Virtue ethics is especially focused on categorizing communities and organizations as good or bad.

D) Virtue ethics is based on the principle that some individuals should not benefit excessively at the expense of vulnerable others.

Wdocs CHAPTER 2 - Ethical Theory and Business

Answer Key Test name: Ch02 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) TRUE 9) FALSE 10) FALSE 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) TRUE 16) TRUE 17) TRUE 18) TRUE 19) TRUE 20) TRUE 21) FALSE 22) TRUE 23) TRUE 24) C 25) A 26) B 27) E 28) E 29) C 30) B 31) D 32) B

TB-An Introduction to Business Ethics(7E,Desjardins)

Wdocs CHAPTER 3 - Corporate Social Responsibility

TB-An Introduction to Business Ethics(7E,Desjardins)

CHAPTER 3 - Corporate Social Responsibility TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Section 230 of the U.S. Communications Decency Act of 1996 proved that obeying the law is sufficient for a business eto fulfill its ethical and social responsibilities. ⊚ true ⊚ false 2) The free market, or neoclassical, theory of corporate social responsibility relies on

utilitarianism and the concepts of individual rights to freedom and property for its ethical justification. ⊚ true ⊚ false 3) To use a company's resources for a project that does not contribute to maximizing profits is

sometimes acceptable and even sometimes required under the economic model of corporate social responsibility. ⊚ true ⊚ false 4) If the costs of externalities like air pollution, ground water contamination and depletion, soil

erosion, and nuclear waste disposal are borne by parties who are not involved in the exchange between buyer and seller, the exchange price does not represent an equilibrium between true costs and benefits. ⊚ true ⊚ false 5) There is no reason to believe that ad hoc attempts to repair market failures, such as

determining shadow prices for unpriced social goods, or exempting social goods from the market, or using the law to address social goods that are unattainable through individual choice, are socially inadequate. ⊚ true ⊚ false

Wdocs CHAPTER 3 - Corporate Social Responsibility

TB-An Introduction to Business Ethics(7E,Desjardins)

6) According to the private property defense of the economic model of corporate social

responsibility, any use of a corporation's resources for any purpose other than maximizing profits is a violation of the owners' property rights and amounts to theft. ⊚ true ⊚ false 7) Bowie's Kantian model of corporate social responsibility obliges managers to do no harm,

but they must also be prepared at times to do some good or prevent some harm. ⊚ true ⊚ false 8) The stakeholder theory of corporate social responsibility is totally incompatible with the

utilitarian ethical theory because the stakeholder concept requires balancing the interests of all the parties affected by business decisions. ⊚ true ⊚ false 9) A wider interpretation of the meaning of a stakeholder as any affected party places an

impossible burden on managers who would have to account for everyone who might be affected by a business decision. ⊚ true ⊚ false 10) The free market theory provides the rationale for the responsibility of managers to make as

much money for their stockholders as possible. ⊚ true ⊚ false 11) The significance of the moral minimum approach lies in its recognition that compliance with

the law is insufficient for being an ethically responsible business. ⊚ true ⊚ false

Wdocs CHAPTER 3 - Corporate Social Responsibility

TB-An Introduction to Business Ethics(7E,Desjardins)

12) Market failures occur in a variety of situations in which the pursuit of profit will not result in

a net increase in consumer satisfaction because in these situations markets fail to do what they were designed to do. ⊚ true ⊚ false 13) Prisoners' dilemma cases are examples of situations in which cooperation does not have a

more optimal outcome than competition. ⊚ true ⊚ false 14) We learn about market failures and thereby prevent harms in the future only by sacrificing

the first generation as a means for gaining this information. ⊚ true ⊚ false 15) Milton Friedman did not recognize that there are limits to the pursuit of profits. ⊚ true ⊚ false 16) The pursuit of profit is the mechanism by which a business is thought to serve the utilitarian

goal of satisfying consumer demand, thereby maximizing the overall good. ⊚ true ⊚ false 17) Utilitarian ethics directs us to maximize happiness. ⊚ true ⊚ false 18) Efficient markets guarantee that an ethically worthy outcome has been achieved. ⊚ true ⊚ false

Wdocs CHAPTER 3 - Corporate Social Responsibility

TB-An Introduction to Business Ethics(7E,Desjardins)

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

19) All of the following statements about Section 230 are true EXCEPT: A) It has been described as the twenty-six words that created the Internet.

B) It has encouraged the spread of pornography on the Internet.

C) It protects ISP and social media platforms from legal accountability for content.

D) It was written to protect newspaper and televisions companies from liability.

20) The most influential theory of corporate responsibility of the past century is A) the free society economic theory.

B) the neoclassical economic theory.

C) the social contract theory.

D) the stakeholder theory.

21) In which of the following ideas are the ethical roots of the economic model of corporate

social responsibility found?

A) The interests of stakeholders are as important as the interests of the corporation's stockholders.

B) Managers are ethically obliged to make as much money as possible for their stockholders because to do otherwise would undermine the very foundations of our free society.

C) Managers must prioritize stakeholders' interests if there is a conflict between the interests of stockholders and the interests of employees, consumers, suppliers, or society.

D) The actions of corporations can and should be restricted by the rights of anyone affected by their decisions.

22) The management of an online retailer is mostly interested in implementing strategies and

pushing policies that result in the utilization of their stockholders' property to serve the interests of its employees and the local community. The defenders of which of the following models are likely to consider these actions as theft?

A) the triple bottom line theory B) the cyclical theory of social change C) the stakeholder theory of corporate social responsibility D) the economic model of corporate social responsibility

Wdocs CHAPTER 3 - Corporate Social Responsibility

TB-An Introduction to Business Ethics(7E,Desjardins)

23) Which of the following statements does not represent a market failure, a situation in which

the pursuit of profit will not result in a net increase in consumer satisfaction?

A) The costs of pollution, groundwater contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties external to the economic exchange between buyer and seller.

B) Where there is no mechanism for pricing, for setting a value on public goods, there is no guarantee that the markets will result in the optimal satisfaction of the public interest in regard to public goods.

C) Situations in which externalities have been internalized result in an equilibrium in the exchange price between true costs and benefits.

D) The pursuit of individual self-interest results in a worse outcome than would have occurred had the behavior of the parties involved in the economic exchange been coordinated through cooperation or regulation rather than mere competition.

24) Which statement does not support the claim that an unconditioned ethical directive such as

the one the economic model of corporate social responsibility demands of business management is inappropriate for utilitarian theory?

A) Markets can work to prevent harm only by first-hand experience with harms that have to occur before they can be remedied.

B) It is claimed that once market failures are adequately addressed by the government, business just needs to obey the law that addressed them. Business, however, has the ability to inappropriately influence government policy and the law.

C) Business has the ability to influence consumers' desires by helping shape those desires through advertising.

D) A more precise formulation of a utilitarian-based principle would be to maximize profit whenever doing so produces the greatest good for the greatest number, with the proviso that managers must consider the impact a decision will have in many ways other than merely financial.

Wdocs CHAPTER 3 - Corporate Social Responsibility

TB-An Introduction to Business Ethics(7E,Desjardins)

25) According to the private property defense of the economic model of corporate social

responsibility, managers who use corporate funds for projects that are not directly devoted to maximizing profits are stealing from their owners. Which statement supports this view?

A) Property rights are restricted when they conflict with the basic rules of society as embodied in law and custom.

B) The connection between ownership and control that exist for personal property does not legally exist for corporate property.

C) Investors buy their stocks with the hope of maximizing return on their investment.

D) Stockholders in publicly traded corporations are better understood as investors rather than owners.

26) Which statement is true of Bowie's Kantian approach to business ethics?

A) People have a duty both to not cause harm and to prevent harm.

B) Both causing no harm and preventing harm override other ethical considerations.

C) While it is ethically good for managers to prevent harm or do some good, their duty

to stockholders overrides these concerns.

D) A narrow interpretation of Bowie's "cause no harm" imperative makes the duties faced by management under the neoclassical model significantly different from the economic model.

27) Which statement represents a challenge to Evan and Freeman's defense of the stakeholder

theory against the economic model of corporate social responsibility?

A) The law now recognizes a wide range of managerial obligations to such stakeholders as consumers, employees, competitors, the environment, and the disabled.

B) Courts and legislatures have recognized that the rights and interests of various constituencies affected by corporate decisions limit managers' fiduciary responsibility.

C) The stakeholder theory cannot answer the question as to how, exactly, a manager should go about balancing the diverse and competing claims of all parties.

D) There is no guarantee that when managers produce profits, they will serve the interests of either stockholders or the public.

Wdocs CHAPTER 3 - Corporate Social Responsibility

TB-An Introduction to Business Ethics(7E,Desjardins)

28) Which of the following statements is true of the stakeholder model of corporate social

responsibility?

A) It is based on the premise that a business is a private property, and like any private property, the owners get to decide what to do with it.

B) It appeals to such important ethical norms as utilitarianism and freedom because of its connection to the free enterprise system.

C) It assumes that compliance with the law is sufficient for being an ethically responsible business.

D) It begins with the insight that every business decision affects a wide variety of people, benefiting some and imposing costs on others.

Wdocs CHAPTER 3 - Corporate Social Responsibility

Answer Key Test name: Ch03 1) FALSE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) TRUE 12) TRUE 13) FALSE 14) TRUE 15) FALSE 16) TRUE 17) TRUE 18) FALSE 19) C 20) B 21) B 22) D 23) C 24) D 25) C 26) C 27) C 28) D

TB-An Introduction to Business Ethics(7E,Desjardins)

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 4 - Corporate Culture, Governance, and Ethical Leadership

CHAPTER 4 - Corporate Culture, Governance, and Ethical Leadership TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) A good and effective leader must also be ethical. ⊚ true ⊚ false 2) Personal decision making and ethical behavior within a given company actually are

influenced very little, or not at all, by the corporate culture of that company. ⊚ true ⊚ false 3) Ethical business leaders not only act ethically on a personal level, but also allocate corporate

resources to support and promote ethical behavior in the workplace. ⊚ true ⊚ false 4) In a study of the nature of ethical leadership, if leaders strongly demonstrated individual

traits of receptivity, listening, openness, and caring for people, these traits were found to impede their success and employees' perception of them as ethical leaders. ⊚ true ⊚ false 5) Before having an impact on the culture via a code of conduct or a statement of values, a

company must first determine its mission and articulate its mission statement. ⊚ true ⊚ false 6) "Whistleblowing" can harm the business and the whistleblower, but has not been known to

end the unethical behavior it exposes. ⊚ true ⊚ false

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 4 - Corporate Culture, Governance, and Ethical Leadership

7) Ethics ombudsmen and ethics hotlines in organizations allow employees to report

wrongdoing and create procedures for follow-up and enforcement. ⊚ true ⊚ false 8) In an organization, codes and rules prove to be meaningless if ethical behavior is not

enforced. ⊚ true ⊚ false 9) The pressure of competetive markets alone is enough to weed out unethical behavior among

organizations. ⊚ true ⊚ false MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

10) A corporate culture is fashioned by a shared pattern of all of the following except A) beliefs.

B) expectations.

C) meanings.

D) bylaws.

11) Which of the following statements is true of corporate cultures?

A) Corporate cultures are always changing rapidly.

B) One person, even a strong leader, cannot have a significant impact on a company's

culture.

C) An organization's culture offers it direction and stability during challenging times.

D) A firm's culture cannot be its sustaining value.

12) Which of the following is true of an ethical organizational culture?

A) An ethical corporate culture can be compromised for short-term financial gains.

B) An ethical culture empowers employees to act in ethically responsible ways even

when the law does not require it.

C) An ethical corporate culture evolves naturally and is self-sustaining.

D) An ethical corporate culture changes rapidly with whatever social trends that are prevalent at a given point in time.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 4 - Corporate Culture, Governance, and Ethical Leadership

13) According to research conducted by Collins and Porras, which of the following is a common

practice that explains the success of visionary companies?

A) a great emphasis on essential and enduring tenets B) aggressive marketing techniques that ensure profitability C) a commitment to following bureaucratic norms D) an attitude that justifies adopting any means as long as ends are met 14) Ethical leaders are characterized by which of the following?

A) They use ethical methods to attain their goals.

B) They guide their organization towards an ethical goal.

C) They “walk the talk” of ethical responsibility.

D) Their personal behavior demonstrates responsible decision making.

E) All of the answers are correct.

15) Which of these is not a requirement of internal mechanisms for reporting wrongdoing within

an organization?

A) They must be effective.

B) They must allow anonymity.

C) They must report to legal authorities.

D) They must protect the rights of the accused.

16) Which of these is true regarding assessment and monitoring of the ethics of a corporate

culture?

A) Ongoing ethics audits can uncover silent vulnerabilities that could later challenge the firm.

B) Ongoing ethics audits can serve as a vital element in risk assessment and prevention.

C) Ongoing ethics audits can enable organizations to spot weak areas before other stakeholders (internal and external) can spot them.

D) Ongoing ethics audits can and do serve all of these functions within an organization.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 4 - Corporate Culture, Governance, and Ethical Leadership

Answer Key Test name: Ch04 1) FALSE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) D 11) C 12) B 13) A 14) E 15) C 16) D

Wdocs CHAPTER 5 - The Meaning and Value of Work

TB-An Introduction to Business Ethics(7E,Desjardins)

CHAPTER 5 - The Meaning and Value of Work TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The value of housework and child care have systematically been undervalued by social programs such as Social Security, unemployment insurance, and many public policies concerned with marriage and divorce. ⊚ true ⊚ false 2) A job might be described simply as work in which self-identity and the activity are

independent of each other. ⊚ true ⊚ false 3) It is its potential to be intimately connected to our deepest values that makes the meaning and

value of work have important implications for the structure and operation of the workplace. ⊚ true ⊚ false 4) According to the classical interpretation of work, happiness is simply getting whatever one

wants. ⊚ true ⊚ false 5) The human fulfillment model of work believes that work is the primary means for developing

human potential. ⊚ true ⊚ false 6) According to the human fulfillment model, the psychological and social benefits of work do

not reduce to merely subjective and personal values. ⊚ true ⊚ false

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TB-An Introduction to Business Ethics(7E,Desjardins)

7) Karl Marx was sure that industrial capitalism inevitably, necessarily, alienates workers from

the product of their work, from the creative process of work, and from their very essence as social creatures. ⊚ true ⊚ false 8) Both liberals who believe that the ethical assessment of work should be based on how work

affects the workers' ability to make free and autonomous decisions about their lives and the human fulfillment school that makes that judgment on the basis of what makes a good meaningful human life are saying essentially the same thing. ⊚ true ⊚ false 9) The idea that the meaning and value of work is whatever the workers determine that it is

simply doesn't challenge in any significant way Bowie's contention that employers have an obligation to provide meaningful work. ⊚ true ⊚ false 10) Primary goods are those goods that are necessary in order to achieve whatever other goods an

individual chooses to pursue. ⊚ true ⊚ false 11) To the degree that work can be intellectual, leisurely, and free, it can be meaningful;

employment and wage labor are as likely to attain these conditions. ⊚ true ⊚ false 12) Social conditions of routine, unchallenging, boring jobs tend to suppress the human faculties

of rational and autonomous choice. ⊚ true ⊚ false 13) The critics of work-life balance practices believe that work can be a central part of an

individual's identity and it can have significant benefits for people. ⊚ true ⊚ false

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TB-An Introduction to Business Ethics(7E,Desjardins)

14) The Greek philosopher Aristotle disparaged work because of its very necessary, and

therefore slavish, nature. ⊚ true ⊚ false MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

15) Select the statement that does not represent one of the common aspects of the contemporary work scene.

A) Workers have significant choices and alternatives open to them in the workplace.

B) More jobs today are temporary, part-time, or subcontracted out to third parties.

C) Most workers will likely have no more than one or two jobs in a lifetime.

D) The social values of work, such as camaraderie and social status, are lost to part-time and temporary workers.

16) According to CEO Larry Fink, BlackRock’s research shows that all of the following is true

except A) companies that forged strong bonds with their employees had higher financial returns.

B) no relationship changed more during the pandemic than the employer-employee

relationship.

C) “meaningful work” is a public relations goal promoted only by “woke” corporations.

D) today’s employees demand more flexible and meaningful work.

17) Work-from-home situations provide all of the following except A) greater flexibility for employees.

B) greater stress and higher expectations for employees.

C) a more realistic work-life balance D) blurred understanding of “normal” work responsibilities.

18) Which of the following statements is a classical interpretation of work?

A) Humans are intellectual, yet work is physical.

B) For cultured and civilized people, work is undignified.

C) Humans are free beings; work is a necessity.

D) Work diminishes human nature and human potential.

E) All of the answers are correct.

F) None of the answers are correct.

Wdocs CHAPTER 5 - The Meaning and Value of Work

TB-An Introduction to Business Ethics(7E,Desjardins)

19) Which of these statements does not describe the hedonistic interpretation of work?

A) Work is the price we pay to get the necessities of life and other things that make life

pleasurable.

B) Happiness is the enjoyment of cultural activities.

C) There is no specific content for human happiness.

D) Individuals are allowed to choose whatever ends they desire.

20) Which of the following statements is not true about the issues confronting business ethics?

A) Not every job contributes to the development of human potential.

B) The proper kind of workplace contributes to human development.

C) Jobs do not have the potential for influencing and shaping individuals.

D) Individuals exercise control over jobs.

21) Which of the following is a true expression of Marx's concept of alienation?

A) Alienation is the result of low wages.

B) Alienation is the result of work that prevents the full development of human potential.

C) Alienation means the separation and distinction of one social class from another.

D) The capitalistic system does not inevitably mean a life of alienation for workers.

22) Select the statement that describes the human potentials that work can fulfill.

A) Work provides the occasion for developing talents and exercising creativity.

B) Through work, humans create their own society and culture and thereby their own

identities.

C) Work expresses our nature as social beings.

D) Work allows us to experience our freedom and autonomy in making choices and directing our lives.

E) All of the answers are correct.

F) None of the answers are correct.

23) Indicate the statement that is not consistent with Bowie's liberal theory of work.

A) One of the moral obligations of a firm is to provide meaningful work.

B) It is a simple enough task to find a justification for any objective, normative

definition of meaningful work.

C) Meaningful work defined as nothing more than what employees say it is, is a subjective and individualistic definition of work.

D) The more people are compelled to work, the greater the responsibility to make sure that workplace conditions are as humane as possible.

Wdocs CHAPTER 5 - The Meaning and Value of Work

TB-An Introduction to Business Ethics(7E,Desjardins)

24) How might a liberal have to respond to the suggestion that some workers might prefer to

work at highly routine, unchallenging, and boring jobs?

A) Employers have no choice but to eliminate these jobs.

B) Employers have no obligation to eliminate these jobs.

C) These jobs do not necessarily suppress the human faculties of rational and autonomous choice.

D) While it may be true, on the one hand, that as long as no one is forcing employees to do these jobs, employers don't have to eliminate them, it is also true that accepting the ethical legitimacy of these jobs violates the fundamental values of rational and free choice.

25) In the context of the meaning of work, which of the following statements is true?

A) Work means activities that involve perseverance, discipline, toil, usually performed

with a degree of seriousness and concentration.

B) The meaning of work is likened with being idle, relaxing, playing, and activities such as reading a book or playing a round of golf.

C) Work does not include any task, accomplishment, or undertaking unless it generates an income.

D) An activity is not regarded as work unless the worker's identity and the activity are "morally inseparable."

26) Identify a true statement regarding a job.

A) A job is a role that one steps into and out of as a means for earning money.

B) A jobs refers to a tradition of work in which a person's identity and activities are

"morally inseparable."

C) A job involves developing relationship between the self and the activity.

D) A job enables the evolution of social status and self-esteem in ways that a career does not.

Wdocs CHAPTER 5 - The Meaning and Value of Work

Answer Key Test name: Ch05 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) FALSE 12) TRUE 13) TRUE 14) TRUE 15) C 16) C 17) C 18) E 19) B 20) C 21) B 22) E 23) B 24) D 25) A 26) A

TB-An Introduction to Business Ethics(7E,Desjardins)

Wdocs CHAPTER 6 - Moral Rights in the Workplace

TB-An Introduction to Business Ethics(7E,Desjardins)

CHAPTER 6 - Moral Rights in the Workplace TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) One meaning of "employee rights" is that employees have claims independently of any particular legal system, claims that originate from the respect due to them as human beings. ⊚ true ⊚ false 2) Without collective bargaining, employers would have a stronger incentive to compromise

with individual employees on levels of wages and benefits. ⊚ true ⊚ false 3) A modified version of the right to a job claims that the government should be the last resort

for people who are able to work but unable to find jobs in the private sector. ⊚ true ⊚ false 4) The employment at will doctrine means, essentially, that unless a specific contract states

otherwise, an employer has the right to hire and fire an employee for any reason whatever and the employee has the right to quit a job at any time. ⊚ true ⊚ false 5) Rather than specifying every acceptable and unacceptable reason for dismissing an

employee, due process refers to the procedures employers must go through before dismissing workers. ⊚ true ⊚ false 6) The private property rights of business make it doubtful that it derives its coercive power

from the consent of the governed even in societies where individuals are respected as autonomous, free decision makers. ⊚ true ⊚ false

Wdocs CHAPTER 6 - Moral Rights in the Workplace

TB-An Introduction to Business Ethics(7E,Desjardins)

7) Stockholder rights raise a relevant objection to the participation of workers in management

decisions only if such participation threatens a stockholder's investment. ⊚ true ⊚ false 8) It is simply too much to ask of employers to provide an ideally safe workplace. ⊚ true ⊚ false 9) Information about employees that is gathered through such technologies as polygraphs, drug-

testing, surveillance, psychological tests, or electronic monitoring may sometimes have to include information that is not ordinarily job-relevant and legitimately knowable by the employer if the employer thinks the overall good of the business might someday require it. ⊚ true ⊚ false 10) In the context of workplace safety, risks are defined as the probability of harm, and relative

risks would entail comparing the probabilities of harm involved in various activities. ⊚ true ⊚ false 11) An employee’s right to freedom protects them from an employer mandate to be vaccinated

against a contagious disease. ⊚ true ⊚ false 12) In the United States, civil rights laws do not protect employees from being fired on the basis

of race and sex. ⊚ true ⊚ false 13) The concept of democracy is based on the belief that each individual has the right and duty to

fully participate in social and political decision making. ⊚ true ⊚ false 14) The right to freedom of expression means that an employee can never be fired or disciplined

for personal opinions that they express on their social media accounts. ⊚ true ⊚ false

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TB-An Introduction to Business Ethics(7E,Desjardins)

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

15) Which of the following statements is true of work?

A) People typically determine most aspects of their work themselves.

B) Work is necessary to acquire many central human goods.

C) Most people do not value work as a necessary means to other crucial goals.

D) Work curtails the moral rights of employees.

16) Which of the following moral rights could be waived in order to get a job or an increase in

employment benefits?

A) protection against sexual harassment B) a safe and healthy workplace C) wage levels required for a decent, humane level of existence D) plans for a family E) All of the answers are correct.

F) None of the answers are correct.

17) Which of the following would be a moral right of an individual?

A) the right to a workplace that is free from sexual harassment B) the right to earn minimum wage C) the right to free speech D) the right to paid holidays 18) Identify a moral right from the following options.

A) the right to a chosen health package B) the right to work C) the right to equal opportunities at work D) the right to privacy 19) A right to privacy for employees would prohibit employers from A) ever checking an employee’s work email.

B) monitoring an employee’s activities at work.

C) disciplining an employee for posting on social media while at work.

D) monitoring an employee’s personal email account.

Wdocs CHAPTER 6 - Moral Rights in the Workplace

TB-An Introduction to Business Ethics(7E,Desjardins)

20) Identify the proposition that challenges the argument for mandatory union membership.

A) Mandatory union membership allocates the benefits and burdens of union

membership in a fair and equal manner.

B) Whoever receives benefits from a process that entails costs should share the cost of providing those benefits.

C) Bargaining between employers and employees will be equal only if the employees bargain for wages and benefits as individuals.

D) Bargaining between employers and employees will be equal only if the employees bargain for wages and benefits collectively.

21) Determine which statement defends the idea that private employers do not have an obligation

to provide jobs for others.

A) Everyone needs a job to be able to satisfy his or her instrumental and psychic needs.

B) The economic system of a society exists, fundamentally, for the well-being of that society's members.

C) Employers have rights, although limited, to property and also have their own right to work.

D) If citizens have a right to a job to fulfill their instrumental and psychic needs, then some public institution has the obligation to provide those jobs. Private employers can fulfill that obligation more efficiently than government.

22) Select the statement that represents an erosion of employment at will as a legal doctrine.

A) Federal and state constitutions grant employees rights against the government as their

employer.

B) Union employees are protected from arbitrary dismissal by their union contracts.

C) Civil rights laws protect employees from being fired because of race or sex, for example.

D) Federal and state laws protect employees who blow the whistle on certain illegal or unethical acts committed by their employers.

E) All of the answers are correct.

F) None of the answers are correct.

23) A procedural account of due process would preclude A) prior warnings, documentation, and written performance standards.

B) a list specifying beforehand every possible reason for dismissal and distinguishing

them from unacceptable reasons.

C) probationary periods.

D) an appeal process and an opportunity to respond to allegations.

Wdocs CHAPTER 6 - Moral Rights in the Workplace

TB-An Introduction to Business Ethics(7E,Desjardins)

24) Which statement fails to provide a valid reason in support of John McCall's claim that

employees have a right to participate in management decisions?

A) Human dignity is tied to the ability of humans to guide their own lives and control their own destinies.

B) Fairness demands that each and every person affected by a managerial decision must have an opportunity to represent his or her own interests.

C) Employees who participate in and contribute to decision making are less likely to suffer alienation and burnout.

D) None of the answers are correct.

25) Select the statement that might represent a valid objection to worker participation in

management decisions.

A) Private owners have property rights that include the right to manage and direct the business.

B) Workers lack the expertise and knowledge to manage a business.

C) Substantial conflicts that exist between the interests of the firm and the interests of the employees are more likely to occur than similar conflicts between the interests of managers and the interests of the firm.

D) Any attempt to involve employees in decision making will be inefficient.

26) According to the free market and classical models of corporate social responsibility,

individual bargaining between employees and employers would be the best approach to workplace health and safety. Which statement does not support this approach?

A) Employees are perfectly free to decide what level of risk they are willing to accept for a corresponding level of wages.

B) In a competitive free market, individual bargaining would result in the optimal distribution of safety and income.

C) The means the market uses to gather information about risks is by observing the harms done to the first generation exposed to imperfect market transactions and market failures.

D) The threat of compensatory payments acts as an incentive for employers to maintain a reasonably safe and healthy workplace.

Wdocs CHAPTER 6 - Moral Rights in the Workplace

TB-An Introduction to Business Ethics(7E,Desjardins)

27) Select the statement that does not reflect the connection between the two senses of privacy as

a right to be "left alone" and privacy as a right to control information about oneself.

A) Certain decisions we make about how we live our lives play a crucial role in defining our personal identity.

B) Privacy establishes the boundary between individuals and thereby serves to define one's individuality.

C) The right to control certain very personal decisions and information has little relevance to determining the kind of person we are and the person we become.

D) To the degree that we value treating each person as an individual, we ought to recognize that certain personal decisions and information are rightfully the exclusive domain of the individual.

Wdocs CHAPTER 6 - Moral Rights in the Workplace

Answer Key Test name: Ch06 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) TRUE 11) FALSE 12) FALSE 13) TRUE 14) FALSE 15) B 16) F 17) C 18) B 19) D 20) C 21) C 22) E 23) B 24) D 25) C 26) C 27) C

TB-An Introduction to Business Ethics(7E,Desjardins)

Wdocs CHAPTER 7 - Employee Responsibilities

TB-An Introduction to Business Ethics(7E,Desjardins)

CHAPTER 7 - Employee Responsibilities TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Values like trust play no helpful role in the real world of business. ⊚ true ⊚ false 2) An agent is a person who acts on behalf of another person, so all agents are, in effect,

employees. ⊚ true ⊚ false 3) The fact that employees take on special role-specific responsibilities within an economic

system that benefits everyone is one reason offered for the claim that these responsibilities override other ethical considerations. ⊚ true ⊚ false 4) One reason why a blanket obligation for all employees to obey their employers no matter

what is unreasonable is that the choice of obeying someone's command or jeopardizing one's job is fundamentally coercive, and, thus, the consent involved is not fully free. ⊚ true ⊚ false 5) Personal interests of managers that interfere with their responsibilities as managers constitute

an unethical conflict for them. ⊚ true ⊚ false 6) In Ronald Duska's view, the idea that a company is not expected to sacrifice on behalf of

employees but that employees are expected to sacrifice on behalf of the company makes the company an appropriate object of loyalty. ⊚ true ⊚ false

Wdocs CHAPTER 7 - Employee Responsibilities

TB-An Introduction to Business Ethics(7E,Desjardins)

7) Unless and until a firm has demonstrated a willingness to sacrifice on behalf of employees,

employees have little reason to demonstrate loyalty to the firm. ⊚ true ⊚ false 8) While it is plausible that some dishonest acts, like bluffing a person in a business transaction,

can have beneficial social consequences that do not threaten the stability of underlying social practices, it would be harder to claim that routine dishonesty would not erode the trust that does seem essential to social cooperation. ⊚ true ⊚ false 9) According to Richard DeGeorge, even if a whistle-blower does not have documented

evidence that will convince impartial observers of a firm's role in causing harm, he or she is nevertheless obligated to blow the whistle. ⊚ true ⊚ false 10) Business is like a game because it has its own rules. Therefore, ethical values such as trust

and honesty have no part to play in the rules of the game of business. ⊚ true ⊚ false 11) Some observers argue that insider trading is an efficient means to disseminate accurate

information about the market and that it moves the markets in the direction of equilibrium.

The challenge to this argument is, however, that this is accomplished by unfair and unethical means. ⊚ true ⊚ false 12) The Kantian tradition in principle-based ethics argues that dishonesty treats others as a means

to our own ends and thus disrespects the dignity of other persons. ⊚ true ⊚ false

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13) Ensuring that markets function within the law, assume full information, and must be free

from fraud and deception is an important internal function for market-based economic systems. ⊚ true ⊚ false MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

14) As an ethical value, trust plays an important role in which of the following business-related professions?

A) auditors B) lawyers C) financial advisors D) bankers E) None of the answers are correct.

F) All of the answers are correct.

15) Which statement is not true of the agency concept?

A) In actual fact, not all agents are employees.

B) Under the common law tradition of the United States, all employees are treated as

agents of employers.

C) The primary responsibilities in the employer-agent relationship lie with the employer.

D) The law has described the employee-employer connection as a master-servant relationship.

16) Select the statement that does not support the narrow view of non managerial employees'

responsibilities to their employer—the idea that the employer exercises a great deal of control over the nature and terms of employment with very little discretion given to the employee.

A) Employees consent to obeying managers when they take a job.

B) Employees who agree to obey employers are not truly abandoning their own responsibility.

C) The choice of obeying someone's command or jeopardizing one's job is a fundamentally coercive situation, and, therefore, the consent involved is not fully free.

D) Owners have property rights and have to be protected against the harms they might suffer from employees.

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17) Which of the following statements reflects a reason for business principals to invest in stock?

A) Investors are playing the stock for short-term gain.

B) Investors see their stock ownership as an investment in a company and its technology.

C) Investors see their stock ownership as a long-term investment for personal retirement

and security.

D) All of the answers are correct.

E) None of the answers are correct.

18) Which statement describes a managerial action that does not unethically impose costs upon

stockholders and other stakeholders?

A) The action imposes unwanted costs on stockholders and stakeholder by giving up some alternatives in favor of others in the interest of maintaining the fiscal stability of the enterprise.

B) A personal interest of a manager hinders the exercise of his or her professional judgment.

C) A portion of some payment is kicked back to the payer as an incentive to make the payment in the first place.

D) Financial advisors receive payments from a brokerage house to pay for research and legal services that should be used to benefit the advisors' clients, not the advisors' personal interests.

19) Select the statement that, ethically speaking, best represents a valid concept of what loyalty

to a firm means.

A) Loyalty means a willingness to sacrifice one's own interest by going above and beyond ordinary employee responsibilities.

B) Loyal employees are expected to sacrifice for the firm even though the firm is not necessarily bound to sacrifice for the employee.

C) Since the model of agency law lays a legal duty of loyalty on employees, employees clearly have a corresponding ethical responsibility to be loyal.

D) While a willingness to sacrifice might be a part of loyalty, it would seem that devotion and faithfulness to a common good is both more essential to loyalty and what explains the willingness to sacrifice.

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20) Identify the statement that challenges Albert Carr's analogy that, like poker, business is a

game that has its own rules and, therefore, is exempt from ordinary requirements of morality.

A) Carr overestimates the prevalence and acceptability of dishonesty within business.

B) Even if business did have its own set of ethical conventions, that fact alone does not exempt it from ordinary ethical evaluations.

C) There are major disanalogies between business and games like poker that weaken the conclusions drawn from Carr's analogy.

D) Unlike poker games, individual often have no choice but to participate in business practices.

E) All of the answers are correct.

F) None of the answers are correct.

21) According to Richard DeGeorge, which statement presents a condition that makes blowing

the whistle on a company not just permissible but obligatory?

A) A threat of serious harm exists.

B) The whistle-blower has exhausted all internal channels for resolving the problem.

C) The harm to be prevented overrides the harm done to the firm and to other employees.

D) The whistle-blower has good reason to believe that blowing the whistle will prevent the harm.

22) Select the statement that is not a criticism of insider trading.

A) The insider benefits inappropriately by buying or selling the stock at a price below or

above what the market will demand when the inside information is made public.

B) An insider can benefit by trading on bad news as well as good, and this might be an incentive to work against the firm's best interests.

C) The insider's action sends the correct message to the market, reflecting the stock's true value, moving the market toward equilibrium.

D) The insider's information is often used without the firm's permission in a way that harms the stockholder's interests.

Wdocs CHAPTER 7 - Employee Responsibilities

TB-An Introduction to Business Ethics(7E,Desjardins)

23) Which of the following statements is true of insider trading?

A) Insider trading holds back information from financial markets that moves stock prices

closer to the point that reflects their true value.

B) Allowing insider trading deters the employees of a firm from working for the benefit the firm.

C) When an insider-trading stock transaction leads to one person's gain and another's loss, it amounts to fraud.

D) Insiders as well as outsiders can lay legitimate claims on gains from stock sales that take advantage of others.

24) Which of the following statements accurately represents philosopher Ronald Duska's views

on loyalty in business?

A) Employees have no responsibility of loyalty to their employees as the overriding goal of business is profit.

B) Loyalty is most relevant in situations in which both parties seek their own selfinterest.

C) Employers are expected to sacrifice for employees, but seldom is an employee willing to sacrifice for his or her firm.

D) Employees who resign from their firm to take up a position at a competing organization should be deemed disloyal.

Wdocs CHAPTER 7 - Employee Responsibilities

Answer Key Test name: Ch07 1) FALSE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) FALSE 11) TRUE 12) TRUE 13) TRUE 14) F 15) C 16) C 17) D 18) A 19) D 20) E 21) D 22) C 23) C 24) A

TB-An Introduction to Business Ethics(7E,Desjardins)

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 8 - Marketing Ethics; Product Safety and Pricing

CHAPTER 8 - Marketing Ethics; Product Safety and Pricing TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The legal concept of negligence focuses on the conduct and state of mind of the producers and holds them responsible for harms only when they fail to act in ways that could have prevented the harm. ⊚ true ⊚ false 2) Even though parties freely engage in an exchange of goods or services, we cannot be sure

that autonomy has been respected (the Kantian requirement) and that mutual benefit has been achieved (the utilitarian requirement). ⊚ true ⊚ false 3) Need for a product, or anxiety and other stress experienced during a business transaction, or

price gouging may make a consumer's choice less voluntary, and misleading advertising or incomplete understanding of a product's complexity may make his or her consent less informed. ⊚ true ⊚ false 4) Given that business transactions between two parties are mutually beneficial and freely

entered into, social norms of equal treatment and fairness or questions as to what social goods are promoted or threatened are not ethically relevant to the transactions. ⊚ true ⊚ false 5) The contract model of the marketing relationship that offers a consumer only a limited or

expressed warranty on a product is not really one-sided nor does it fail to meet the standards of truly informed consent because the consumer agrees to these limitations. ⊚ true ⊚ false

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 8 - Marketing Ethics; Product Safety and Pricing

6) In claiming that the concept of negligence should include the standard of the "reasonable"

person who is a thoughtful, reflective, and judicious decision maker, we are surely asking no more of the average consumer than he or she is capable of giving. ⊚ true ⊚ false 7) The legal doctrine of strict product liability is controversial because it holds a business

accountable for paying damages in cases where it was not at fault. ⊚ true ⊚ false 8) According to McCall's fairness argument, holding the manufacturer liable under the strict

product liability doctrine is fair because the injuries caused by a product are externalities that fairness requires to be internalized in the exchange between producer and consumer. ⊚ true ⊚ false 9) Because the efficiency benefits of large retailers can be passed on to consumers in the form

of lower prices and because a competitive market should drive out uncompetitive firms, there is no persuasive rationale for claiming that it is unethical and unfair to force smaller stores out of businesses by temporarily pricing products under cost. ⊚ true ⊚ false 10) The fact that a price is freely agreed to by the parties to a transaction means that it must be

accepted as fair and beneficial even if there are social costs involved in a transaction. ⊚ true ⊚ false 11) The assumption that consumers are benefited whenever their preferences are satisfied in the

market holds true under close scrutiny. ⊚ true ⊚ false 12) A prima facie ethically legitimate market exchange is conditional to mutual benefit for each

party involved. ⊚ true ⊚ false

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 8 - Marketing Ethics; Product Safety and Pricing

13) The ethical perspective that underlies tort law holds that we all owe other people certain

general duties, even if we have not explicitly and voluntarily assumed them. ⊚ true ⊚ false MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

14) Which ethical question is not relevant to the process of marketing a product?

A) What responsibility do producers have for the quality and safety of their products?

B) Who is responsible for harms caused by a product?

C) Is the customer's willingness to pay the only ethical constraint on fair pricing?

D) Can producers discriminate in favor of, or against, some consumers?

E) All of the answers are correct.

F) None of the answers are correct.

15) Identify the statement that fails to reinforce the idea that the purchases made by consumers

may not be truly voluntary.

A) The more the consumers need a product, the less free they are to choose.

B) The consumer may experience anxiety and stress, for example, when purchasing an automobile.

C) Price fixing and price gouging may restrict the consumer's freedom.

D) There may be marketing practices aimed at vulnerable populations such as children or the elderly.

E) All of the answers are correct.

F) None of the answers are correct.

16) Select the statement that represents a situation where informed consent is not operative.

A) The complexity of a product has been fully explained to a consumer.

B) The customer is not clear about the calculation of the interest rate on a leased product

transaction.

C) The extended warranty conditions on a product have been fully disclosed to a consumer.

D) Warning labels on a product have pointed out any potential hazards associated with operating it.

E) All of the answers are correct.

F) None of the answers are correct.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 8 - Marketing Ethics; Product Safety and Pricing

17) Choose the statement that does not challenge the assumptions commonly found in economic

textbooks that customers are benefited, almost by definition, whenever their preferences are satisfied in the market.

A) Impulse buying cannot be justified by appeal to consumer interests.

B) The exchange is prima facie ethically legitimate because it assumes that the individuals involved in the transaction act as free, autonomous agents capable of pursuing their own ends.

C) The ever-increasing number of bankruptcies suggests that consumers cannot purchase happiness.

D) Empirical studies provide evidence that greater consumption can lead to unhappiness.

18) Select the question that is not relevant to the examination of business's responsibility for its

products.

A) What caused an event to happen?

B) Who is to blame for any harms caused, who is liable?

C) What was the agent's motive?

D) Who was responsible for "caring for" a situation, accountable without any suggestion of culpability, fault, or blame?

19) Business responsibility for social harms such as obesity and opioid abuse is less clear than

standard cases of product liability because A) consumers have full knowledge of the harms of obesity and opioid abuse.

B) it is difficult to identify a connection between a particular product and any particular case of obesity or opioid abuse.

C) there are many factors that contribute to obesity and opioid abuse.

D) a consumers’ own choices are responsible for obesity and opioid abuse.

20) The strict product liability standard requires a manufacturer to compensate injured consumers A) only if it can be shown that the manufacturer was at fault in causing or failing to

prevent a harm.

B) even if the manufacturer was not at fault, even if there was nothing the manufacturer could have done to prevent the harm.

C) only if the manufacturer used fraud or coercion at the time the contract for the product was agreed to by the consumer.

D) only if the product's features were described in a deceptive manner in advertising copy.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 8 - Marketing Ethics; Product Safety and Pricing

21) Producers should be held strictly liable for harms caused by performance of products even if

the said harms are not caused by their negligence. Which of the following statements does not challenge this view?

A) Strict liability adds significant hidden costs to every consumer product.

B) Strict liability places domestic producers at a competitive disadvantage with foreign businesses.

C) If it is unfair to penalize businesses for harms they couldn't prevent, it is equally unfair to penalize consumers for harms they could not prevent.

D) Strict liability discourages product innovation and encourages frivolous and expensive lawsuits.

22) Identify the statements in which John McCall argues that strict liability is no more unfair

than it would be to hold injured consumers accountable.

A) The consumer who is injured by a product is unfairly disadvantaged in the economic competition and is denied an equal opportunity to compete in the marketplace.

B) Assigning the costs for injuries caused by defective products to other consumers of the product and to the shareholders of the company is more appropriate than assigning the costs to the injured consumer or to society at large.

C) Compensation returns the parties to equal standing, and the economic competition can continue as a result.

D) By holding the manufacturer liable, the costs are passed on, ordinarily through increased liability insurance costs, to those who stand to benefit from the product.

E) Both "The consumer who is injured by a product is unfairly disadvantaged in the economic competition and is denied an equal opportunity to compete in the marketplace" and "Compensation returns the parties to equal standing, and the economic competition can continue as a result" are correct answers.

F) Both "Assigning the costs for injuries caused by defective products to other consumers of the product and to the shareholders of the company is more appropriate than assigning the costs to the injured consumer or to society at large" and "By holding the manufacturer liable, the costs are passed on, ordinarily through increased liability insurance costs, to those who stand to benefit from the product" are correct answers.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 8 - Marketing Ethics; Product Safety and Pricing

23) It is alleged that markets fail, in some situations, to ensure a fair price and thereby limit

consumers' freedom. Which statement does not support that allegation?

A) Sellers extract extraordinarily high prices in situations where consumers have few options for obtaining a needed product.

B) From the utilitarian perspective, consumers are always benefited by low prices and balancing the benefits to buyers from low prices with the benefits to sellers of high prices is the only ethical pricing issue.

C) Monopolistic pricing limits the variety of products available to consumers.

D) The more uniformity of prices one finds within an industry, the less likely it is that competition exists.

24) Select the statement that is at odds with the idea that pricing strategies may be unfair.

A) Large stores in competition with smaller stores can absorb losses from undercutting

the smaller stores on price, an option not available to the smaller ones.

B) Established distribution systems reward large retailers with lower costs per unit rather than the smaller stores that have higher cost per unit.

C) A competitive market should drive out uncompetitive firms by driving prices down.

D) Government subsidies of one industry may keep alternative industries from competing on price.

25) Identify a true statement about the obesity epidemic in the United States.

A) It is near impossible to trace particular cases of obesity-related health harm to a

particular food or drink.

B) Businesses cannot claim that consumer decisions regarding use and misuse of their products play a deciding factor in obesity.

C) The harmful effects of the obesity epidemic are limited to specific individuals who became overweight as a result of poor dietary choices.

D) Cases of obesity are similar to standard cases of strict product liability.

26) Which of the following statements is true of the pharmaceutical industry?

A) Critics point out that pharmaceutical companies who design, market, and manufacture

drugs cannot be blamed for the great increase in opioid abuse.

B) Medical professionals who write opioid prescriptions do not have a responsibility to function as gatekeepers to limit drug use.

C) Evidence shows that the pharmaceutical industry spends more money marketing their drugs than they do on research and development of new drugs.

D) During the 1990s, the pharmaceutical industry admitted that the oxycodone and hydrocodone drugs were addictive forms of pain relief medication.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 8 - Marketing Ethics; Product Safety and Pricing

27) Identify a true statement about ethics in marketing.

A) An aspect of consumer autonomy requires that customer consent be not only

voluntary, but also informed.

B) It is easy to determine if potential consumers are being treated with respect in marketing situations.

C) The existence of buyers for a product and sellers willing to sell that product implies that such transactions are ethically legitimate.

D) Evidence shows that effective marketing causes greater consumption, leading to a happy condition termed "affluenza."

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 8 - Marketing Ethics; Product Safety and Pricing

Answer Key Test name: Ch08 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) FALSE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) FALSE 11) FALSE 12) TRUE 13) TRUE 14) F 15) F 16) B 17) B 18) C 19) B 20) B 21) C 22) F 23) B 24) C 25) A 26) C 27) A

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing

CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) Manipulation of a person, considered as a process of subtle direction or management, does not entail total control of that person. ⊚ true ⊚ false 2) It is impossible to manipulate someone without deceiving them. ⊚ true ⊚ false 3) Even if most manipulation is done to further the manipulator's own ends at the expense of the

person being manipulated, utilitarians would not generally be inclined to think that such manipulation necessarily lessens overall happiness. ⊚ true ⊚ false 4) Ethical wrong is done either by intending to deceive consumers in order to manipulate their

buying behavior, treating them as a mere means to one's own ends (the Kantian approach) or by the harmful consequences for consumers, competitors and overall market efficiency (the utilitarian approach) but not by both. ⊚ true ⊚ false 5) Any effort by the Federal Trade Commission (FTC) to evaluate expected deceptive

marketing practices has been criticized because it would mean punishing business on the basis of what the FTC thinks might happen rather than on what actually does happen. ⊚ true ⊚ false 6) The dependence effect is based on John Kenneth Galbraith's claim that consumer demand

depends on what producers have to sell. In effect, advertising, by creating wants, manipulates consumers and violates their autonomy. ⊚ true ⊚ false

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing

7) Robert Arrington argues that marketing influences us by appealing to pre-existing and

independent desires, and since marketing does not prevent us from renouncing those desires, and as long as we don't renounce them, they must still be considered autonomous. ⊚ true ⊚ false 8) Gerald Dworkin would argue that critical reflection on a desire is not necessary for that

desire to be autonomous. ⊚ true ⊚ false 9) Even if marketing practices are effective, even if marketing can and does influence consumer

choice, there is no reason to believe that marketing has any ethical responsibility for the consequences of choices made by consumers who are vulnerable to products that may harm their health. ⊚ true ⊚ false 10) Sales, unlike marketing that is directed to general populations, are directed to individuals,

and, as a result, any salesperson who fails to stop a sales pitch when he or she suspects that a customer's decision-making is not autonomous, is acting unethically. ⊚ true ⊚ false 11) Mass marketing seeks to promote one's product to the widest possible audience, with the

assumption that sales will increase in proportion to the number of people exposed to the advertisement. ⊚ true ⊚ false 12) Hundreds of millions of people are themselves supplying personal information to businesses

through the use of personal social media accounts. ⊚ true ⊚ false 13) Guilt, pity, a desire to please, anxiety, fear, low self-esteem, pride, and conformity are

powerful motivators that marketers rely on to promote their products. ⊚ true ⊚ false

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing

14) There is universal agreement for determining precise standards for what constitutes deception

and how best to regulate it. ⊚ true ⊚ false MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

15) Which of the following would not be characterized as a “Dark Pattern” of webpage design?

A) easy on-line subscription that requires multi-step process to unsubscribe B) a prominent advertised ticket price with user fees, facility fees, service fees, and convenience charges added only to final invoice C) tracking cookies that collect consumer web activity D) free subscriptions that included a forced continuity agreement 16) Identify the statement that provides a reason why manipulation of consumers is not relevant

to marketing ethics.

A) Knowing consumers' psychological profiles through marketing research, their motivations, interests, desires, beliefs, anxieties, and fears facilitates manipulation of their behavior.

B) Some marketing practices target populations that are particularly susceptible to manipulation and deception.

C) One need not necessarily deceive a person in order to manipulate him or her.

D) Manipulation doesn't necessarily entail total control over a person; it may simply be a process of subtle direction or management.

E) All of the answers are correct.

F) None of the answers are correct.

17) Select the practice that is not a form of consumer manipulation.

A) cigarette advertising aimed at children B) ads aimed at elderly population for such goods as Medicare supplementary insurance,

casinos and gambling, nursing homes, and funeral services C) researching the criteria that a typical buyer uses to select a particular make and model of automobile D) selling an extended automobile warranty or theft protection products to a customer who is anxious about the whole process of buying an automobile

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing

18) Which of the following examples of personal information is readily available to digital

marketers?

A) your web-browsing history B) purchases you have made on Amazon C) your present location D) what products you have searched for on-line E) All of the answers are correct.

F) None of the answers are correct.

19) What statement suggests that the Johnson & Johnson Tylenol ad stating that "last year

hospitals dispensed 10 times as much Tylenol as the next four brands combined" was suspiciously deceptive?

A) It was a simple statement of a valid claim about the product.

B) It was an effort to call attention to the practice of selling the drug to hospitals at a deep discount.

C) Johnson & Johnson wanted consumers to think that the medical profession and hospitals believed it was the most effective acetaminophen treatment on the market.

D) Johnson & Johnson wanted to show its commitment to lowering medical costs to consumers.

20) Identify the statement that would not support the idea that determining precise standards for

what constitutes deception and how best to regulate it is problematical.

A) The primary ethical wrong is in the intent to deceive, to intend to use someone's buying behavior for one's own ends. To prevent this wrong from occurring, the Federal Trade Commission (FTC) would have to punish on the basis of what it thinks a marketing practice will do to consumers rather that what it actually does to them.

B) It is enough to prevent beforehand harms that deceptive practices might do rather than regulate them after the harms have been done.

C) Regulation might be too strong because it may well turn out that consumers are deceived by relatively trivial marketing practices.

D) Regulation might be too weak if it places the burden on consumers to prove the deception.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing

21) Select the statement that correctly describes the dependence effect derived from John

Kenneth Galbraith's ideas on consumer affluence.

A) Consumers depend on the free market to learn about the products they may need and want.

B) Supply follows and depends on demand; consumers are only getting what they want.

C) Consumer demand depends on what producers have to sell. Demand is a function of supply. Advertising creates wants.

D) Owners of productive capital depend on giving consumers what they want; otherwise they would lose their investment.

22) If consumers are being manipulated by advertising, what are some key ethical implications?

A) Individual autonomy, the central element of Kantian respect for persons, would be

violated by the creation of wants.

B) If consumers pursue trivial and contrived products, market exchanges only appear to increase overall satisfaction.

C) Consumer autonomy is violated by advertising's ability to create nonautonomous desires.

D) The economy of the affluent society is contrived and distorted.

E) All of the answers are correct.

F) None of the answers are correct.

23) Identify the statement that does not challenge Robert Arrington's argument that because

marketing doesn't prevent us from renouncing our pre-existing and independent choices, our desires for them must be considered autonomous.

A) Gerald Dworkin's point that if an individual does not or cannot rationally reflect on a first-order desire (one he or she just happens to have at any time), then the fact that he or she doesn't renounce it does not prove conclusively that it is an autonomous desire.

B) Dworkin's further claim that autonomy is a second-order capacity of persons to reflect critically on first order preferences and the capacity to accept or change them in the light of higher order preferences and values.

C) Roger Crisp's claim that we need to know why a first-order desire is accepted, and if not renounced, if it is indeed independent from, say, advertising.

D) Even if some consumer choices are not autonomous, nothing in Dworkin's or Crisp's analysis shows that advertising is responsible for violating autonomy, only that some consumers do not act in a fully self-conscious way.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing

24) Select the statements reflecting the general sense of vulnerability that is relevant to target

marketing.

A) A person is vulnerable as a consumer because he or she is unable in some way to participate as a fully informed and voluntary participant in the market exchange.

B) A person is vulnerable because he or she is the typical customer for a particular product.

C) A person is vulnerable because he or she is susceptible to some physical, psychological, or financial harm other than the financial harm from an unsatisfactory market exchange.

D) A person may be seen as vulnerable because he or she belongs to some ethnic group, or is poor, or is a resident of a particular neighborhood.

E) Both "A person is vulnerable as a consumer because he or she is unable in some way to participate as a fully informed and voluntary participant in the market exchange" and "A person may be seen as vulnerable because he or she belongs to some ethnic group, or is poor, or is a resident of a particular neighborhood" are correct answers.

F) Both "A person is vulnerable as a consumer because he or she is unable in some way to participate as a fully informed and voluntary participant in the market exchange" and "A person is vulnerable because he or she is susceptible to some physical, psychological, or financial harm other than the financial harm from an unsatisfactory market exchange" are correct answers.

25) Which of the following examples are ways in which persons are vulnerable as consumers

because they are vulnerable in some more general sense?

A) Elderly persons vulnerable to injuries and illnesses might be compelled to make consumer choices based on fear or guilt.

B) A grieving family member might make choices for funeral services based on guilt or sorrow.

C) An inner-city resident who is poor, uneducated, and chronically unemployed is unlikely to weigh the consequences of using drugs or alcohol.

D) A person afflicted with a medical condition or disease might feel fear associated with the condition that can lead to uninformed consumer choices.

E) All of the answers are correct.

F) None of the answers are correct.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing

26) Select the statements that challenge the idea that marketers cannot be held liable for decisions

that any individual makes.

A) Marketing addresses populations, not, as sales do, individuals, so no direct causal connection can be demonstrated between a marketing campaign and an individual's choices to buy a product.

B) If marketing is ineffective in influencing consumer choice, the marketers selling their services to businesses are committing fraud.

C) Any individual may choose not to buy a marketed product.

D) If marketing is effective and does influence consumer choices, it cannot disavow responsibility for the consequences of those choices.

E) Both "If marketing is ineffective in influencing consumer choice, the marketers selling their services to businesses are committing fraud" and "If marketing is effective and does influence consumer choices, it cannot disavow responsibility for the consequences of those choices" are correct answers.

F) Both "Marketing addresses populations, not, as sales do, individuals, so no direct causal connection can be demonstrated between a marketing campaign and an individual's choices to buy a product" and "Any individual may choose not to buy a marketed product" are correct answers.

27) In the context of consumer privacy, which of the following statements is true of consumers'

personal information?

A) Tracking of personal information is done anonymously so that consumers seldom know that it is occurring.

B) Social media companies are legally prohibited from selling the personal information of their users to advertisers.

C) Today's digital marketers have limited access to general demographic data based on age, gender, and income.

D) Digital marketing techniques have eliminated the ethical concerns that were raised during the traditional advertising era.

28) Which of the following statements is true of manipulation?

A) Manipulation relies on appealing to the rational decision-making ability of the other

person.

B) When attempts to manipulate are unsuccessful, there is no ethical wrongdoing.

C) Manipulation involves directing behavior without explicit consent or conscious understanding.

D) Manipulation is weakened when the persons manipulated believe that they have acted of their own accord.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 9 - Marketing Ethics; Advertising and Digital Marketing

Answer Key Test name: Ch09 1) TRUE 2) FALSE 3) FALSE 4) FALSE 5) TRUE 6) TRUE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) C 16) F 17) C 18) E 19) C 20) B 21) C 22) E 23) D 24) F 25) E 26) E 27) A 28) C

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 10 - Sustainability and the Natural Environment?

CHAPTER 10 - Sustainability and the Natural Environment TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The originality of the Brundtland Commission’s work on sustainable development was that it connected economic development with social justice and environmental conservation. ⊚ true ⊚ false 2) In one area of emerging environmental policy consensus, the real ethical issue in the debate

over the use of natural objects as resources is not that we use them, but which objects we use, how, what for, and the rate at which we use them. ⊚ true ⊚ false 3) Defenders of the narrow view of corporate social responsibility argue that internalizing

external costs and assigning property rights to unowned goods, such as wild species, are appropriate responses to market failures. ⊚ true ⊚ false 4) Market solutions to environmental pollution fallaciously presume that what is good and

rational for a collection of individuals is necessarily good and rational for a society. As a result, important ethical and policy questions can be missed and that can lead to serious environmental harm. Under the market model, for example, restricting sales of sports utility vehicles (SUVs) and treating them as trucks with higher gas mileage standards or increasing taxes on gasoline would never be considered. ⊚ true ⊚ false 5) Although beliefs are objective and subject to rational evaluation, there is no reason not to

judge the validity of a person's belief by a person's willingness to pay for it. Therefore, economic analysis legitimately includes beliefs in addressing environmental policy. ⊚ true ⊚ false

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 10 - Sustainability and the Natural Environment?

6) Markets can work to prevent harm only through information supplied by the existence of

market successes. ⊚ true ⊚ false 7) If the productive activities used in the classical model of economics continue, the entire

model will prove unstable because these activities may move resources through the system at a rate that outgrows the productive capacity of the earth or the earth's capacity to absorb their wastes and by-products. ⊚ true ⊚ false 8) There are no conditions that will allow the biosphere to produce resources and absorb wastes

indefinitely. ⊚ true ⊚ false 9) Pollution of any type is an example of market failure due to negative externalities. ⊚ true ⊚ false 10) In the current decade, the idea of sustainability has become the primary model for

understanding business's environmental responsibilities. ⊚ true ⊚ false 11) “Sustainability” was originally intended to be a risk management strategy to help every firm

and every industry survive over the long-term. ⊚ true ⊚ false

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 10 - Sustainability and the Natural Environment?

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

12) The Brundtland Commission’s understanding of global development included three fundamental principles. Those principles include a commitment to economic development, environmental conservation, and A) the right for all people to emigrate for environmental reasons.

B) the responsibility of businesses to provide jobs for poor people.

C) the priority of meeting the needs of all people.

D) the priority of global economies to continue to grow indefinitely to meet consumer demand.

13) Select the statement that expresses a good reason for preserving biological diversity among

both plant and animal species.

A) Lost diversity among crops makes food production more prone to disease and weather-related failures.

B) Plant diversity holds great promise for research into medicine production.

C) Plant diversity holds great promise for research into food production.

D) Biodiversity contributes to healthier ecosystems.

E) All of the answers are correct.

F) None of the answers are correct.

14) Select the statement that does not challenge the narrow view of the economic model of

corporate social responsibility.

A) Business's only responsibility is to maximize profit within the law, and in so doing, fulfills its role within a market system, which, in turn, serves the greater overall social good.

B) The "costs" of pollution are typically borne by parties external to the economic exchange, so free market exchanges cannot guarantee optimal results.

C) Important ethical and policy questions can be missed if policy decisions are left solely to the outcome of individual decisions.

D) Public goods such as a stable climate, clean air, and ocean fisheries have no established market price.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 10 - Sustainability and the Natural Environment?

15) Identify the statement that defenders of a market-based approach to environmental

responsibilities would offer to prevent environmental market failures.

A) Markets can work to prevent harm only through information supplied by the existence of market failures.

B) We learn about market failures and thereby prevent harms in the future only by sacrificing the first generation as a means for gaining this information.

C) Business has wider environmental responsibilities than those required under a narrow free market approach.

D) External costs should be internalized, and property rights should be assigned to unowned goods such as wild species.

16) Before the enactment of the environmental protection laws of the 1970s, which of the

following was the generally accepted approach in the United States to business's responsibility?

A) Only individuals who could prove that they had been harmed by pollution could raise legal challenges to air and water pollution.

B) As long as business responded to the market and obeyed the law, it met its environmental responsibilities.

C) Laws established minimum standards to ensure air and water quality and species preservation.

D) Absent any proof of negligence, public policy lets the market decide environmental policy.

E) Both "Only individuals who could prove that they had been harmed by pollution could raise legal challenges to air and water pollution" and "Absent any proof of negligence, public policy lets the market decide environmental policy" are correct answers.

F) Both "As long as business responded to the market and obeyed the law, it met its environmental responsibilities" and "Laws established minimum standards to ensure air and water quality and species preservation" are correct answers.

17) Select the statement that does not identify a critical problem with the regulatory approach to

business’s environmental responsibilities.

A) It underestimates the ability of business to influence consumer choice.

B) It assumes that business fulfills its environmental responsibility when it responds to the environmental demands of consumers.

C) It underestimates the influence that business can have in establishing the law.

D) It assumes that economic growth is environmentally and ethically benign.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 10 - Sustainability and the Natural Environment?

18) Choose the statement that defenders of the circular flow model, which explains the nature of

economic transactions in terms of a flow of resources from businesses to households, would support.

A) The services and value provided by natural resources can be provided in many ways by substituting different factors of production and, therefore, resources are infinite.

B) The possibility that the economy can grow indefinitely to keep up with significant population growth is ignored by this model.

C) If resources are moved through the classical model of a productive system at a rate that outpaces the productive capacity of the earth or the earth's capacity to absorb wastes and by-products of the system, the entire classical model will prove unstable.

D) Many resources like clean air, drinkable water, fertile soil, and food, under the circular flow model, cannot be replaced by the remaining factors of production.

19) Identify the statement that does not meet Natural Capitalism's principles for the redesign of

business to meet its environmental responsibilities.

A) To serve the needs of the poorest 75 percent of the world's population, ecoefficient business practices focus on ways of increasing efficiency and, therefore, decreasing resource use by a factor of 5 to 10.

B) To serve the needs of the poorest 75 percent of the world's population, the standard growth model would increase economic growth by a factor of 5 to 10.

C) The principle of biomimicry attempts to eliminate by-products once lost as waste and pollution and reintegrate them into the production process or return them as a benign or beneficial product to the biosphere.

D) Models of business as a producer of goods should be replaced with a model of business as a provider of services.

20) Which of the following statements is true of market failures?

A) Market failures bolster the ability of economic markets to achieve a sound

environmental policy.

B) Ad hoc attempts to repair market failures have proved to be environmentally adequate.

C) Market failures occur when abundant markets exist to create a price for important social goods.

D) Sacrificing the first generation of public goods as a means for gaining information on market failures is an ill-advised strategy.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 10 - Sustainability and the Natural Environment?

21) Identify a true statement about environmental regulations.

A) Currently, the primary legal avenue open for addressing environmental concerns in

business is tort law.

B) Environmental laws enacted during the 1970s shifted the burden of proof from those who cause the harm to those threatened with harm.

C) The current approach to environmental regulations underestimates the influence that business can have in establishing the law.

D) National environmental regulations are sufficient to address international environmental challenges.

22) The “business case” for environmental sustainability includes all the following except A) B) C) D)

sustainability is a prudent long-term financial strategy. sustainable practices can lead to significant cost savings. sustainable businesses receive greater tax benefits and legal protections. unmet global markets provide significant business opportunities for sustainable products and services.

23) Overuse of a generalized understanding of sustainability can lead to which of the following

problems?

A) It comes to mean all things to all people and thereby losings its meaning.

B) It asks too much of business by incorporating every possible environmental concern.

C) It gets co-opted by business to mean little more than risk management.

D) Both "It comes to mean all things to all people and thereby losings its meaning" and "It asks too much of business by incorporating every possible environmental concern" are correct answers.

E) Both "It comes to mean all things to all people and thereby losings its meaning", "It asks too much of business by incorporating every possible environmental concern", and "It gets co-opted by business to mean little more than risk management" are correct answers.

Wdocs TB-An Introduction to Business Ethics(7E,Desjardins) CHAPTER 10 - Sustainability and the Natural Environment?

Answer Key Test name: Ch10 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) FALSE 7) TRUE 8) FALSE 9) TRUE 10) TRUE 11) FALSE 12) C 13) E 14) A 15) D 16) E 17) B 18) A 19) B 20) D 21) C 22) C 23) E

Wdocs CHAPTER 12 - International Business and Globalization

TB-An Introduction to Business Ethics(7E,Desjardins)

CHAPTER 12 - International Business and Globalization TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

1) The fact that political and economic elites in other countries tolerate corrupt and unethical conduct and are the very ones to benefit from that conduct in certain cases does not provide evidence to support the claim that what we take as unethical is ethically acceptable there. ⊚ true ⊚ false 2) The maximalist approach to the question of whether there are any values that can be

reasonably applied across cultures holds that as long as corporations cause no harm, they have fulfilled their ethical responsibilities by meeting their economic goal of producing goods, services, jobs, and profits for consumers, employees, and shareholders. ⊚ true ⊚ false 3) One major challenge to the minimalist approach that holds that business is free to pursue its

economic interests as long as certain minimal moral rights are not violated in the process is that it does not seem to explain why the responsibilities correlated with these rights fall to multinational business rather than to government. ⊚ true ⊚ false 4) Decisions made within businesses only rarely can have as great an influence on international

affairs as those made within government, so they are not one of the central problems of worldwide economic integration. ⊚ true ⊚ false 5) Defenders of globalization argue that international economic integration is an essential step

in worldwide economic growth, which alone can adequately address worldwide poverty and deprivation. ⊚ true ⊚ false

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6) The argument that the free, competitive international market will provide a more efficient

and optimal distribution of economic goods and services is utilitarian in that the recipient of the market's benefits is the collective "greatest number of people" while allowing that the market may cause harm to actual individuals and their families in the process. ⊚ true ⊚ false 7) There is no strong worldwide political consensus in favor of local environmental, labor, and

consumer regulation, so there is no opposition to free trade agreement and the World Trade Organization that will be major engines for deregulation. ⊚ true ⊚ false 8) Defenders of the Golden Straitjacket policies argue that poor nations are free to reject such

policies as, among others, making the private sector the engine of economic growth, eliminating and lowering tariffs on imported goods, getting rid of quotas and domestic monopolies, opening industries, stock, and bond markets to direct foreign ownership and investment, but that the poor nations cannot reasonably expect economic prosperity to follow from alternative policies. ⊚ true ⊚ false 9) Defenders of institution like the World Trade Organization, the World Bank, and the

International Monetary Fund claim that because these institutions exist and have authority only because nations have agreed to have them exist with authority and have freely entered into agreements that created and control them, their critics can be accused of supporting undemocratic policies. ⊚ true ⊚ false 10) Even though much of the wealth of the industrialized nations relies on the resources and

markets in the developing world, that is not a reason to believe that taking steps to relieve poverty in these countries is an ethical duty of the citizens and business of the industrialized world rather than a simple act of charity. ⊚ true ⊚ false

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11) No country is entirely self-sufficient in either producing, or finding markets for, its good and

services. ⊚ true ⊚ false 12) Poor countries that reject Thomas Friedman's Golden Straitjacket can reasonably expect that

economic prosperity will follow from alternative policies. ⊚ true ⊚ false 13) If environmental, labor, consumer, and other ethical regulations are accepted and endorsed

universally, they prove to be barriers to fair and open competition. ⊚ true ⊚ false 14) If free trade and greater international economic integration can improve the economic well-

being of any nation that adopts free trade and free market policies, it follows that these policies can improve the economic well-being of all countries. ⊚ true ⊚ false MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

15) Select the statement that supports an ethical relativist conclusion based on the diversity of values that can be found among cultures.

A) It is a mistake to conclude too quickly that because cultures are diverse, they necessarily hold diverse ethical values.

B) Given different circumstances, conduct that might be condemned or excused in one context might not be excused or condemned in another. But, excusing unethical behavior is not the same as justifying it.

C) Even in cases where a local culture holds values different from one's own, a person's own integrity would require that one's personal values not be abandoned.

D) Attempts to justify or excuse otherwise unethical conduct by appeals to local values and customs that are advanced only to contribute to the bottom line are simply another instance where ethical responsibilities restrict self-interest. This fact alone is not a good reason to abandon ethics in the face of a disagreement of values.

E) All of the answers support ethical relativism.

F) None of the answers support ethical relativism.

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TB-An Introduction to Business Ethics(7E,Desjardins)

16) Which of the following rights might clearly be the sole responsibility of government rather

than of international business?

A) the right to minimal education B) the right to nondiscriminatory treatment C) the right to physical security D) the right to a fair trial E) Both "the right to minimal education" and "the right to a fair trial" are correct answers.

F) Both "the right to nondiscriminatory treatment" and "the right to physical security" are correct answers.

17) The Ruggie Framework establishes the following principles for international business

EXCEPT A) a business should conform to the ethical customs that are followed in the country in which it does business.

B) governments have a positive duty to protect rights.

C) business has only negative duties to respect rights or cause no harm.

D) citizens have the right to remedies for any harms done to them.

18) Identify the ways in which the process of international economic integration has increasingly

become more common and accelerated in the last decade or two.

A) International trade agreements such as the General Agreement on Tariffs and Trade (GATT) and the North American Free Trade Agreement (NAFTA) have been established.

B) The Euro was adopted in 2002 within the European Union, establishing a common currency.

C) International loans from the World Bank have supported major development projects throughout the world.

D) Monetary policies established by the International Monetary Fund have made it increasingly easy for capital to flow between countries.

E) All of the answers are correct.

F) None of the answers are correct.

Wdocs CHAPTER 12 - International Business and Globalization

TB-An Introduction to Business Ethics(7E,Desjardins)

19) Select the reasoning that challenges support for the ethical case for free trade and

international economic cooperation.

A) The pursuit of profit within social and economic arrangements that secure free and open competition will allocate resources to their most highly valued uses and distribute those resources in ways that will produce the greatest good for the greatest number of people.

B) International competition for labor, jobs, goods and services, natural resources, and capital will, over time, increase the overall well-being of everyone.

C) Economic integration is a major impediment to conflict—the more countries cooperate economically, the less likely they will want to go to war.

D) Even though newly employed workers in the poorer countries who are forced to take jobs that are at a subsistence level in sweatshop conditions are better off in these jobs than they would be without them, the choice to work under such conditions is little more than extortion and exploitation by business.

20) Choose the statement that does not provide a reasonable way for international businesses to

treat their employees in foreign countries on a comparable level with their treatment of employees in their home countries.

A) Pay wages and benefits that are somewhere between those paid in the home country and the minimal wages that will get people to work in the host country.

B) Pay wages and benefits that are very similar in the home and host countries.

C) If it takes two people earning minimum wages to support a family of four just above the poverty level in the United States, a minimum wage in the host country would be similarly determined.

D) All of the answers are correct.

E) None of the answers are correct.

Wdocs CHAPTER 12 - International Business and Globalization

TB-An Introduction to Business Ethics(7E,Desjardins)

21) Choose the statements that do not support the idea that international businesses should rely

on local firms and independent contractors to supply workers in host countries.

A) To benefit from less costly local labor, business should hire workers directly and take full and direct responsibility for how they are treated.

B) Hiring individuals as contractors on a per-item basis avoids having to pay fair wages and benefits.

C) As independent contractors, these individuals are responsible for the terms and conditions of their own employment.

D) Local firms are better equipped to recruit competent workers who will be satisfied with minimum wages.

E) Both "To benefit from less costly local labor, business should hire workers directly and take full and direct responsibility for how they are treated" and "Local firms are better equipped to recruit competent workers who will be satisfied with minimum wages" are correct answers.

F) Both "To benefit from less costly local labor, business should hire workers directly and take full and direct responsibility for how they are treated" and "Hiring individuals as contractors on a per-item basis avoids having to pay fair wages and benefits" are correct answers.

22) Here are some ethical reasons for regulating economic activity. Determine which ones are

unlikely to be judged a barrier to free trade.

A) protecting the environment B) protecting workers and consumers C) protecting family farms D) protecting domestic industries E) All of the answers are likely to be judged as barriers to free trade.

F) None of the answers are likely to be judged as barriers to free trade.

23) Which statement is not a policy included in Thomas Friedman's Golden Straitjacket, the

policies that a country should follow for itself if it "opts for prosperity"?

A) getting rid of quotas and domestic monopolies B) privatizing state-owned industries and utilities C) opening industries, stock, and bond markets to direct foreign ownership and investment D) restricting imports E) All of the answers are correct.

F) None of the answers are correct.

Wdocs CHAPTER 12 - International Business and Globalization

TB-An Introduction to Business Ethics(7E,Desjardins)

24) Identify the statement that challenges the criticism that global economic integration threatens

deeply held noneconomic values.

A) The World Trade Organization, World Bank, and International Monetary Fund are themselves undemocratic bureaucracies that threaten the political values and selfdetermination in poor countries.

B) Private multinational corporations are replacing legitimate governments as the true international decision makers.

C) The policies of the Golden Straitjacket are simply rational requirements for a nation that chooses prosperity over poverty. Financial and economic norms are analogous to scientific laws discovered by social scientists.

D) Global market capitalism fueled by multinational corporations seeks to expand worldwide markets for their products and creates a cultural homogenization that threatens local cultures and traditions.

25) Which of the following is a criticism of the World Trade Organization (WTO)?

A) Its trade agreements seem to trump local decision making in countries and thereby

undermine self-determination and democracy.

B) Being a democratic institution comprised of elected bureaucrats, it is answerable to public constituency that leads to interference in its decision making.

C) It undermines national sovereignty and demands less political regulation among industrialized countries.

D) Its economic policies provide poor countries with financial aid without making it contingent that they follow policies to promote economic stability and growth.

26) Identify an argument that supports the policies aimed at protecting domestic business and

domestic jobs.

A) If the goal of business is jobs and economic development, the location of a corporate headquarters is much more important than the location of operations and supply chains.

B) According to the economic and utilitarian argument, such policies will increase overall happiness as goods and services will become more affordable.

C) The social contract logic states that since businesses receive benefits from the society in which they operate, they owe that society certain duties in return.

D) Such policies put governments, rather than consumers, in the position of choosing winners and losers in the marketplace.

Wdocs CHAPTER 12 - International Business and Globalization

Answer Key Test name: Ch12 1) TRUE 2) FALSE 3) TRUE 4) FALSE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) TRUE 12) FALSE 13) FALSE 14) FALSE 15) F 16) E 17) A 18) E 19) D 20) B 21) F 22) E 23) D 24) D 25) A 26) C

TB-An Introduction to Business Ethics(7E,Desjardins)